Kingston Resources Ltd. · ASX:KSN
Kingston Resources — Investor Presentation (December 2024)
43 slides from Kingston Resources's investor presentation, Dec 9, 2024
Slide 1: Equity Raising Presentation
Step change in cash flow with open pit mining Equity Raising Presentation Accelerating exploration to expand Mineral Hill Gold and Copper production Drill to expand the resource base December 2024 Realise value with a Misima transaction ASX: KSN
Slide 2: Important notices and disclaimer
Important notices and disclaimer Forward Looking Statements Mineral Hill Gold Bar Certain statements contained in this presentation, including information as to the future financial or operating performance of KSN and its projects, are forward looking statements. Such forward looking statements: inc
Slide 3: Important notices and disclaimer
Important notices and disclaimer Exploration by Other Explorers This presentation contains information sourced from the reports of other Explorers. References to the original reports are provided as footnotes where the information is cited in this presentation. KSN does not vouch for the accuracy of
Slide 4: Table of Contents
Table of Contents 1 Kingston Resources Overview 2 Equity Raising 3 Mineral Hill – NSW Gold/Copper Production 4 Misima – PNG Value Realisation 5 Appendix 6 Reserves and Resources 7 Key Risks www.kingstonresources.com.au I ASX: KSN Kingston Resources - Equity Raise Presentation - December 2024 4
Slide 5: 1. Kingston Resources Overview
1. Kingston Resources Overview www.kingstonresources.com.au I ASX: KSN Kingston Resources - Equity Raise Presentation - December 2024 5
Slide 6: Kingston Resources overview
Kingston Resources overview Vision To become a mid-tier gold/copper miner with multiple producing assets Cash flow from Misima value Plant expansion Exploration drilling open pit mining realisation potential Mineral Hill Mine (100%) NSW Misima Gold Project (100%) PNG • Operating mine at 350-400ktpa
Slide 7: Corporate snapshot
Corporate snapshot 1-Year Share Price Performance Market Volume('000) RHS Close Price (A$) (LHS) Shares on issue 707m 0.12 9000 0.11 8000 Warrants & options2,3 170.4m 0.1 0.09 7000 0.08 6000 Share price $0.09 0.07 5000 0.06 0.05 4000 Market cap $64m 0.04 3000 0.03 2000 Cash @ 30 Nov 20241 $5.0m 0.02
Slide 8: Highly experienced and well-regarded Executive Team / Board
Highly experienced and well-regarded Executive Team / Board Significant experience across the development life cycle through to production Mick Wilkes Andrew Corbett Tony Wehby Stuart Rechner Non-Executive Chairman Managing Director Non-Executive Director Non-Executive Director Mick is a seasoned mi
Slide 9: Key achievements
Key achievements Building the Company’s operating capability to enable scaling of the business • Self managing – in-house planning and execution to meet delivery at all stages of the mining cycle • Self performing – owner-operator focused, with local employment and a problem-solving attitude TSF Min
Slide 10: 2. Equity Raising
2. Equity Raising www.kingstonresources.com.au I ASX: KSN Kingston Resources - Equity Raise Presentation - December 2024 10
Slide 11: Equity Raising Summary
Equity Raising Summary Equity Raising will fund surface and underground exploration. Cash flow from Mineral Hill open pit mining to be dedicated to expansion projects Offer size and • c.A$8.4 million institutional Placement (“Placement”) at A$0.075 per share (“Offer Price”) structure • The Placement
Slide 12: Indicative Equity Raising Timeline
Indicative Equity Raising Timeline Event Date Trading halt - Placement Offer opens 6 December 2024 Record date for the SPP 6 December 2024 Trading Halt lifted, trading resumes 9 December 2024 Settlement of New Shares issued under the Placement 13 December 2024 Allotment of New Shares issued under th
Slide 13: Sources and Uses of Funds
Sources and Uses of Funds (excl. Op. Cash Flow from Pearse) Equity Raising to accelerate exploration with a view to leveraging the Mineral Hill plant and targeting a doubling of gold/ copper production Sources of Funds (excl. Op. Cash Flow from Pearse) A$m Multilple valuation drivers: free cash flow
Slide 14: 3. Mineral Hill Gold and Copper Mine
Pearse North November 2024 3. Mineral Hill Gold and Copper Mine www.kingstonresources.com.au I ASX: KSN Kingston Resources - Equity Raise Presentation - December 2024 14
Slide 15: Kingston extends Mineral Hill Mine life out to 2030
Kingston extends Mineral Hill Mine life out to 2030 Six-year mine life extension with updated Ore Reserves 1,2 • Extended Mine Life: Life of mine now six years, extended to +2030. • Increased Ore Reserves: Increased open pit Ore Reserves, plus maiden underground Ore Reserves. • Owner Mining: Focused
Slide 16: Open pit mining – Pearse North
Open pit mining – Pearse North Pearse North mining commenced in late June 2024 – mining rate now > 3Mtpa 60-70k tonnes trucked per week = 3Mtpa of ore and waste 80000 70000 Tonnes (ore and waste) 60000 50000 40000 30000 20000 10000 0 8 July 23 Sep 30 Sep 7 Oct 14 Oct 28 Oct 10 June 19 Aug 4 Nov 3 Ju
Slide 17: Maiden underground ore reserve
Maiden underground ore reserve Significantly improved metallurgy resulting in more payable metal • Copper and gold recovery increased to 88% and 81% respectively2. • LOM AuEq payable ounces increased from 123koz to 200koz. • Existing underground development and flotation plant minimises capital cost
Slide 18: Increase scale at Mineral Hill
Increase scale at Mineral Hill Strategy on expanding Mineral Resources within the mine GD140 EOZ high target grade Au Parkers Hill Plan: MRE update target • Underground drilling and extensions at SOZ • Update Mineral Red Terror target Resource estimates • Extend the LOM Jacks Hut SOZ MRE1 Infill & E
Slide 19: Add projects within trucking distance to Mineral Hill
Add projects within trucking distance to Mineral Hill Mineral Hill is the only processing facility in the southern Cobar Basin Grow resources to expand grinding and flotation 700 Approved 380 for 700ktpa Current Expansion Potential Resource growth strategy Mineral Hill Regional Extensions Acquisitio
Slide 20: Adding inventory with near mine exploration
on EL8334 Adding inventory with near mine 4 EL1999 5 exploration Near mine advanced targets • Underground drilling to commence in Q1 2025. • Resource growth opportunities within the ML. • Focus on extending the mine life. • Grow high margin feed stock adjacent to the plant. 2.5km 3 1 SOZ infill & ex
Slide 21: Grow the operating scale with regional exploration
Grow the operating scale with regional exploration Highly prospective drill targets and geochemical signatures Shift to creating value with exploration • Extension potential within the ML • Near mine targets within EL1999 (Bogong target) Advancing untested targets in EL8334 • Kingston’s ELs highly p
Slide 22: Exploration potential at depth and regionally
Exploration potential at depth and regionally Mineral Hill remains open at depth and along the regional trends Extension potential at depth and regionally: • Depth of drilling at Mineral Hill less than 500m depth • Key mineral deposits in Cobar extend to ~1.8km • Numerous regional targets on Kingsto
Slide 23: 4. Misima Gold Project
4. Misima Misima Gold Mine – circa 1995 Gold Project Kingston Resources - Equity Raise Presentation - December 2024 23
Slide 24: Misima – high value growth asset
Misima – high value growth asset Large scale, long-life, low-cost open pit gold and silver mine • Forecasting 128koz gold per annum over 20-years Item Unit Base Spot • Base case NPV of A$956m1 (US$1,800/oz gold price) Gold Price USD/oz US$1,800/oz US$2,700/oz • Gold price scenario of $2,700/oz lifts
Slide 25: Exploration Upside Potential and Site Layout
Exploration Upside Potential and Site Layout Excellent infrastructure and proven accessibility Abundant Exploration Targets 480,000 485,000 475,000 • Potential for additional high-grade N inventory by targeting the Umuna 8,825,000 corridor. • Extension potential at depth and along strike. • New disc
Slide 26: Misima Project history
Misima Project history 5 High leverage to the gold price 4 KSN initiates sale/JV Gold Price 3 2022 process Misima $2,500.00 2021 DFS 2 Resource 5 2019 – KSN grows to 1 completes 3.8Moz 4 $2,000.00 2017 - KSN 100% 3 commences ownership Misima earn-in 2 $1,500.00 1 2004 1988 Misima Commencement of dec
Slide 27: Summary: Focus on executing our clearly defined strategy
Summary: Focus on executing our clearly defined strategy Leveraging the existing gold-copper asset base while advancing future growth opportunities Experienced Management Team: Focused on multiple value drivers; Mineral Hill cash flow, exploration and Misima value realisation Prime Cobar Basin Locat
Slide 28: Appendix
Appendix www.kingstonresources.com.au I ASX: KSN Kingston Resources - Equity Raise Presentation - December 2024 28
Slide 29: Mineral Hill – social license
Mineral Hill – social license Environmental and social licence to operate Permits in place for mining and processing Cash backed environmental bonds Tailings capacity in place and expansion plans scheduled Biodiversity offset established www.kingstonresources.com.au I ASX: KSN Kingston Resources - E
Slide 30: Competent Person Statement
Competent Person Statement Competent Person’sStatement - Mineral Resource Reported in Accordance with 2012 JORC Code – Mineral Hill Competent Person’sStatement - Mineral Resource Reported in Accordance with 2012 JORC Code – Misima The information in this report that relates to the reporting of the M
Slide 31: Mineral Hill – resources & reserves
Mineral Hill – resources & reserves Attractive commodity base with significant growth potential Total Probable Ore Reserves Measured Resource Inventory Au Ag Cu Pb Zn Au Ag Cu Pb Zn Au Ag Cu Pb Zn Au Ag Cu Pb Zn Deposit Kt (g/t) (g/t) % % % (Koz) (Koz) (Kt) (Kt) (Kt) Deposit Kt (g/t) (g/t) % % % (Ko
Slide 32: Metal equivalents
Metal equivalents This presentation quotes metal equivalent grades for the life of mine plan, Mineral Resources and Ore Reserves. Price assumptions used are based primarily on consensus forecasts with adjustments based on company expectations. Gold equivalent (AuEq) and copper equivalent (CuEq) conv
Slide 33: Misima Gold Project – resources & reserves
Misima Gold Project – resources & reserves Misima Resources & Reserves Indicated Resource Inventory Misima Resources Total Au Ag C/O Au Ag Au Ag C/O Au Ag Deposit Mt (g/t) (g/t) (Moz) (Moz) Deposit Mt (g/t) (g/t) (Moz) (Moz) Umuna 93.5 0.78 4.3 0.3 2.4 13.1 Umuna 157.6 0.7 4.1 0.3 3.6 20.5 Ewatinona
Slide 34: Key risks
Key risks Set out below are the principal risks and uncertainties associated with KSN and its subsidiaries, which are likely to have an effect on KSN’s future financial prospects. It is not possible to determine the likelihood of these risks occurring with any certainty. If one or more of these risk
Slide 35: Key risks
Key risks (5) Reliance on Key Personnel The responsibility of overseeing the day-to-day operations and the strategic management of the Company depends substantially on KSN's Board and executive team. There can be no assurance given that there will be no detrimental impact on KSN if one or more of it
Slide 36: Key risks
Key risks (8) Political Risk, Commodity Price Volatility and Exchange Rates Risks Both from its existing producing operations and, in the event that KSN achieves exploration success, the revenue that may be derived through the sale of commodities exposes potential income to commodity price and excha
Slide 37: Key risks
Key risks (12) Contract Risks KSN operates through a series of contractual relationships with consultants, operators and sub-contractors and may, sell production through various marketing contracts. All contracts carry risks associated with the performance by the parties of their obligations and the
Slide 38: Key risks
Key risks (15) Production and Cost Estimates The ability of KSN to achieve its production expectations or meet operating and capital expenditure estimates on a timely basis cannot be assured. The operations and assets of KSN, as with any other mining operations, are subject to a number of uncertaint
Slide 39: Key risks
Key risks (19) Development, Rehabilitation and Mining Risks When KSN conducts exploration and feasibility studies on potential projects, the commercial viability of any such endeavours is based upon estimates of the size and grade of relevant resources or reserves, location of infrastructure and oth
Slide 40: Key risks
Key risks (22) Laws and Authorisations KSN's operations will be subject to various laws and plans, including those in respect of mining, prospecting, development permit and licence requirements, industrial relations, environment, land use, royalties, water, native title and cultural heritage, mine s
Slide 41: Key risks
Key risks (25) Insurance Arrangements KSN maintains insurance arrangements to protect against certain risks with such scope of coverage and amounts as determined by KSN's board and management, although its insurance policies may not be sufficient to cover all of the potential risks in respect of its
Slide 42: Key risks – placement and issue of shares
Key risks – placement and issue of shares (1) General Risks Associated with an Investment in Shares There are general risks associated with investments in equity securities. No assurances can be given that the New Shares will trade at or above the price at which they are issued. None of KSN, its dir
Slide 43: Key risks – placement and issue of shares
Key risks – placement and issue of shares (3) Allocation of New Shares and Dilution Risk It is intended that certain eligible institutional shareholders may be able to participate in the Placement. For this purpose, an eligible institutional existing holding will be estimated by reference to KSN’s b
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